Your mortgage company can collect on a debt you owe it after it sues you in a foreclosure action in Florida. Florida is what is called a “recourse” state. This means that after your mortgage company successfully sues you in a foreclosure action and receives a final judgment, if there is not enough money from the sale of the property to satisfy that judgment, you...
If you owe $20,000 on a car, and the car is only worth $10,000, wouldn't it be cool to only have to pay $10,000 on the car?
So, for example, today the prime rate is 3.25%. If you filed a Chapter 13 Bankruptcy case in Orlando, and had a car loan with a 21% interest rate, your Orlando bankruptcy lawyer could modify that loan in your Chapter 13 payment plan to change the interest rate to the current Till rate of 5.25%.
Generally speaking, though, so long as the payments on the loan are being made, the person who co-signed the debt does not have to worry if the other person files for bankruptcy.